best way too clear my debts?

benny2k5

Over some time I have run up debts on my cc's and overdraft,they haven't got worse, I've just been struggling to start paying them off, first thing I've done is get rid of my car and start cycling to work (saves about £150 a month + trepairs) and brining a packup(saves about £25 A week), plus side I lost 7lb :-) ,

Virgin cc £3k p/m £100
Tesco cc £2.5k p/m £44
Overdraft £2.5k p/m £40

Halifax tried to pedal me a loan at 24% for 5 yrs £215 a month, Its a big commitment per month if I stay as I am and make over payments when I can, as I pay more my minimum will go down and I can pay more capital to interest? Advice is greatly appreciated.

debindebt

Hello benny2k5

Welcome to this forum. I'm sure that more experienced debtfreewannabe's will be able to offer you really good advice about tackling your debts. Try not to take out a loan for existing debt. Unfortunately I did in the past and it never worked for me. Try looking at the what's the cost website. The snow balling calculator can give you your debt free date

Good luck in your quest for debt freedom

camuk81

Benny have you done a Soa to see the lay of the land. I've out the link below in case

http://www.makesenseofcards.com/soacalc.html

A consolidation rarely works I think only 10% work

benny2k5

Thats what I thought, I never trust banks anymore,my idea was to keep how's I am then outgives me a bit of flexibility rather than committing myself, I'll have to do a Soa
Ta

sugarplum10

ok, so you need to look at which payment has the highest interest!
If you pay off the debt with the highest interest first this will clear the debt faster and cheaper in the long run.
complete an SOA on here and we will have a look at what your spending (sounds scary and totally worth it, its suprising what you dont realise you waste money on).
Then offset any spar monies onto the highest interest debt first, then the second highest and so on. This is called snowballing i think, there is a thread on here some people that will will give you advice how exzactly to do it.
welcome to the forum!!!

Hiddenidenity

Agree with pp's do your SOA and then tackle whichever debt has the highest APR first

benny2k5

sugarplum10 wrote: »

ok, so you need to look at which payment has the highest interest!
If you pay off the debt with the highest interest first this will clear the debt faster and cheaper in the long run.
complete an SOA on here and we will have a look at what your spending (sounds scary and totally worth it, its suprising what you dont realise you waste money on).
Then offset any spar monies onto the highest interest debt first, then the second highest and so on. This is called snowballing i think, there is a thread on here some people that will will give you advice how exzactly to do it.
welcome to the forum!!!

Right I see, tbh in the last month or so I've took stock of what i'm wasting money on, my virgin cc has the highest interest,so I should starting chipping into that! but my overdrafts a halifax one pound a day charge jobby, so if i'm £1 or £2500 in it , I pay £1 a day.so I can't see the point in paying into but then at least with a card ill pay a percentage of the outstanding balance,

cjd2206

You need to use the snowball calculator, it will show you how much to pay off each debt and in which order to clear it the quickest way. I think you can find the link some where on here, I can't post links as I'm a newbie

benny2k5

cjd2206 wrote: »

You need to use the snowball calculator, it will show you how much to pay off each debt and in which order to clear it the quickest way. I think you can find the link some where on here, I can't post links as I'm a newbie

Just done the snowball calculator and if I pay £300 both cards could be clear in 29 months, doesn't look so grim, not sure what's best to do with my o/d with the £1 a day charge tho, this might sound thick but can I setup a standing order to my credit cards? Or do I need manual over payments?

littleskintdragon

You could probably do a standing order for a certain amount every month froom your bank/online banking.
I personally pay when i can but have a friend that pays set amounts every month

camuk81

Benny with the £1 a day comment I presume you bank with Halifax. First things first yes you can have a standing order make sure you pay with in a few days as credit card payments change.

Also register for online banking and set up a bill payment. I would say do a trial of 1p then you can check it has arrived and pay off amounts when and whenever you want to.

I have online banking with mine and its a god send. I do standing order for all mine and it allows you to over pay. But please remember you are in control. If you do not pay, miss a date, pay to the wrong card it will only be down to you. I would check with your credit card to make sure they have no problems accepting Standing orders. and they won't charge (Most won't but check)

You will need the payment details from the bank of your statement.

Good luck Benny